Jump to content

Digtal 100s Charts with Corresponding Underlying Cash or Future


Guest GA

Recommended Posts

In the new platform, Digital 100s products are display with chart of the underlying instrument. Please ensure that the chart display corresponds with the exact underlying (cash or future) use as reference for settlement to avoid confusion as Digital 100s product can be settled based on underlying cash or futures price. 

Example: The Hong Kong HS50 Digital 100s Daily use futures price as reference but the chart display used the Hong Kong HS50 Cash price instead of Hong Kong HS50 future priceScreen Shot NewPlatform1.jpg

Link to comment

Hi, thanks for the question regarding the settlement of the digital 100's. There are inherently different products to anything else on the IG platform, including both DFB, cash markets, or futures, and therefore settle very differently. Let me break down how each of these are priced and settle below. 

 

Index DFB or cash market: taken from the front month future and adjusted for fair value and dividends (where appropriate). 

Future: Taken directly from the underlying futures market and a spread is wrapped around it.

Digital 100: this is a volatility product, not a tracker, but will settle basis the underlying markets spot price at that time. This will be different to the future and cash/DFB price, but for transparency it will settle basis this spot price which is in the system at that exact time. This is the most accurate and fair way to settle these types of bets. 

 

I hope this gives a bit of clarification on this, but please let me know if any further assistance is required. 

Link to comment

Hi James, thank you for the clarification on difference between cash and future price. The difference between cash and future prices is the reason that I would suggest for a corresponding (cash or future) price chart to be displayed with the corresponding Digital 100s Indices products as different Digital 100s Indices products use cash or future price as reference at expiry.

 

For example
1. Refer to the screenshot with Digital 100s US500 Daily and Digital 100s US500 Weekly; the US500 Daily expiry is reference to official close of SPX500 Index, the US500 Weekly expiry is reference to S&P 500 Index futures at close on Friday. Charts display next to both the Digital 100s US500 Daily and Weekly are the US500 Cash price, while there are US500 Cash price and US500 Mar 18 future price charts available and showing different prices.

(Suggest to display the US500 Future price chart with the Digital 100s US500 Weekly instead of US500 Cash price chart)

 

2. Refer to the screenshot with Digital 100s Hong Kong HS50 Daily, the Digital 100s Hong Kong HS50 Daily is reference to Index futures at close. Charts display next to the Digital 100s Hong Kong HS50 is the Hong Kong HS50 Cash price, while there are Hong Kong HS50 Cash price and Hong Kong HS50 Feb 18 future price charts available and showing different prices.
(Suggest to display the Hong Kong HS50 future price chart with the Digital 100s Hong Kong HS50 Daily instead of Hong Kong HS50 Cash price chart)

 

3. Refer to the screenshot with Digital 100s German 30 Daily and Digital 100s German 30 Weekly, both use the cash price as reference at expiry and the cash price chart is displayed
(No change suggested)


Please advice, thank you.

IG Screen Shot NewPlatform2.jpgIG Screen Shot NewPlatform3.jpgIG Screen Shot NewPlatform4.jpg

Link to comment

Hi - I'm not sure I understand your point. Every Digital 100 (irrespective of them having a weekly / daily / monthly settlement) will settle against the underlying index cash market at that time. The closest chart to this price which we can project will be the IG DFB or cash price, and therefore the most representative chart when making a decision. If you project a futures chart then there would be a significant different between the chart and the settlement. 

 

Maybe I have misinterpreted your statement, so if I have please let me know.

Link to comment

Hi James, NOT ALL Digital 100s Indices products settle against the underlying index cash market at that time, these information are stated in the Expiry section of the Digital 100s Indices products specifications as per multiple screenshots attached. Please read the products specifications. Unless the Digital 100s Indices products specifications on the new platforms is inaccurate or otherwise, Digital 100s Indices products could settle against the underlying index futures or index cash market.

 

Examples

Digital 100s (US500 Weekly, HS50 Daily and China 300) settle against the underlying index futures

Digital 100s (US500 Daily, Germany30 Daily and Germany30 Weekly) settle against the underlying index cash market

 

As mentioned in previous posts, currently for some Digital 100s Indices product, chart data display does NOT correspond with the settlement reference. 

Examples

Digital 100s Indices (US500 Weekly, HS50 Daily) display cash market data chart instead of futures market data chart.

 

The suggestion is to have the corresponding chart data reference for settlement display along with the Digital 100s Indices products

Examples

Hong Kong HS50 future price chart with the Digital 100s Hong Kong HS50 Daily instead of Hong Kong HS50 Cash price chart
US500 Future price chart with the Digital 100s US500 Weekly instead of US500 Cash price chart

 

Hope this clarify

 

Link to comment

Apologies - let me try and clarify and sorry for the above misinformation. Most binaries will settle against the underlying cash index, whilst others will settle against the futures. Whether the binary settlement is against the cash index or futures will dictate which chart is displayed and is the most accurate. The S&P daily and weekly binary is relatively unique in that the indicative charts need to have the same EPIC which both are quoted off, and therefore there isn't a difference between these web trading charts. This discrepancy should be very small, especially over the relatively short time frame. Further more, as with all charts, this will be indicative. 

Link to comment

Dear James

 

Please advice on following questions, thank you.

1. What is EPIC?

2. In what sense are the S&P daily and weekly binary relatively unique in that the indicative charts need to have the same EPIC?

3. Price difference between cash and futures can stay significantly different for a long period depends on various factors, therefore having respective cash or future chart display along with Digital 100s indices product can be of significance. 
For example the HS50 Cash and Future price charts are of 50 points difference for the past few days (refer to past screenshots), which cover 2 strike prices at 20 points interval for Digital 100s HS50

4.Since all charts are indicative, Should IG take this chance to improve the service quality by displaying price charts with real time cash and futures from respective data provider and exchanges because Digital 100s Indices products reference to exact price of external data at expiry?

Link to comment


1. What is EPIC?

An EPIC code is simply an abbreviation code which is used to differentiate between assets and expiry's (and therefore chart types). 

2. In what sense are the S&P daily and weekly binary relatively unique in that the indicative charts need to have the same EPIC?

S&P daily will settle against the underlying cash index, whilst the weekly will settle against the index futures. Both, however, will have an indicative chart of the IG derived and fair value adjusted cash price.

3. Price difference between cash and futures can stay significantly different for a long period depends on various factors, therefore having respective cash or future chart display along with Digital 100s indices product can be of significance. 

For example the HS50 Cash and Future price charts are of 50 points difference for the past few days (refer to past screenshots), which cover 2 strike prices at 20 points interval for Digital 100s HS50

To me this reads as a statement?

4.Since all charts are indicative, Should IG take this chance to improve the service quality by displaying price charts with real time cash and futures from respective data provider and exchanges because Digital 100s Indices products reference to exact price of external data at expiry?

I can certainly pass this on, however I know there are significant costs associated with such an option, and given the fact this hasn't changed for years, I doubt it would change now. 

Link to comment

Point 3 is in response to your earlier reply " This discrepancy should be very small, especially over the relatively short time frame. " regarding cash and futures price difference of SP500, which may not apply to other indices. Hence a need to display cash or future price chart along with Digital 100s indices product to reflect a closer approximation for customer to reference with when making decision. 

Link to comment


wrote:

Point 3 is in response to your earlier reply "
This discrepancy should be very small, especially over the relatively short time frame.
" regarding cash and futures price difference of SP500, which may not apply to other indices. Hence a need to display cash or future price chart along with Digital 100s indices product to reflect a closer approximation for customer to reference with when making decision. 

ah ok, makes sense. The S&P binary in question was what I was referring to where the chart will be the same for both the weekly and daily. Although there will of course be large differences between some other indices (especially is they have a large integer value to start with) S&P is generally small. I will pass your sentiment onto the desk, but at present I doubt this is likely to change given the scale of the difference. 

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • General Statistics

    • Total Topics
      21,258
    • Total Posts
      90,864
    • Total Members
      41,363
    • Most Online
      7,522
      10/06/21 10:53

    Newest Member
    Worthyhack
    Joined 05/02/23 04:54
  • Posts

    • HI,  Please if any IG supporting staff can answer the questions below? 1. in the upcoming AMC/APE vote on 14 March 2023, can shareholder that hold AMC and APE at IG able to make a vote? I also have AMC and APE at IBKR and they did send out a notification to inform me that I can do proxy vote. Will IG do the same? 2. the upcoming vote is to determine APE covert back to AMC then do reverse spilt. Last year after APE issued, IG staff told me that they have to move APE to share dealing account from my ISA account as ISA is not eligible to hold APE (which is completely unbelivable, my APE at AJ Bell and HL are still sitting in ISA account). Anyway, if the conversion and reverse spilt is going to happen, will IG move my APE back to ISA account for the corporate action? Many Thanks
    • The epidemic in recent years has produced profound changes in people's lifestyles, and many of their activities have started to be developed in the virtual world, which plays an important role in promoting the development of the universe of meta. Games, as an important part of the universe of meta, will be the first industry to gain the benefits , but the following conditions are still indispensable for blockchain games to achieve better development.   - Wallets and Exchanges. Through the use of wallets, game users can truly take control of the assets in the game, and exchanges provide a trading platform and liquidity for these game assets NFT, helping users trade and revitalize their game assets. Wallets are a key application for depositing blockchain assets. Currently, wallets such as Metamask are not enough to support the extensive adoption of block games, and wallets will further advance community drive the popularity of blockchain games.  - Game playability. The biggest difference between blockchain games and traditional games is that gamers are also investors. Many blockchain games have gone out of course, treating all users as investors only and forgetting that the essence of making games is to develop high-quality games that users are interested in paying for. If most people play a game just to make money, and no one is ready to pay for it, it becomes a side-scam. The revenue of the participants of the side scam comes from the money of the people who come later, and if there are not enough people who come later, they will not be able to cash in the revenue, leading to the breakdown.  - Speed and performance. A high level of concurrency is the characteristic of game applications, so Wax, Coinan Chain and Polygon, which are public chains with a high level of concurrency and low fees, have attracted a large number of game developers. In the future, with the maturity of technologies such as Ethernet Layer 2 and slice scaling, as well as the maturity of other gaming public chain technologies compatible with EVM, blockchain games will have a better development and operation environment.  - Cross-chain and interaction. Cross-chain and interaction of game assets will be a direction of future development of metaverse games, and blockchain should be connected and accessible like the Internet. The maturity of cross-chain technology in the future will promote the cross-chain transfer of game assets and NFT, and improve the interaction experience of the system                                                                                     The game should maintain the operation of the project by relying on the payment of some users or selling profitable products, just like the new blockchain game Fairy Cat in 2023, which developed diverse gameplay for players and increased the playability of the game, thus got the recognition of many players. Blockchain games need to work hard on game experience and playability. Token economics is essentially just a kind of interest structure , and even good token economics cannot replace the development, operation and profitability of the project itself. It is believed that with the maturity of the above conditions, more and more game developers and investors will enter this industry and together promote the production of some blockchain games with beautiful graphics, first-class experience and high playability.
    • Hello, Is any interest paid on "available" cash (not "margin") in a spread betting account? For example, if I held £10k in an account and had no open positions. The reason for asking is that I understand that proceeds from short sales in a CFD will receive interest (benchmark-2.5%), so was wondering if that applied to all cash, and couldn't find an answer on the web site.   Thanks.
×
×
  • Create New...